Green Bonds for Modernisation of Multi-Apartment Buildings

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The Government of the Republic of Lithuania, the first in the Baltic states, intends to issue Government securities – green bonds and to use the generated funds for modernisation of multi-apartment buildings as well as for enhancing energy efficiency.

“The main objective of green bonds is financing of green projects. They have to solve the major environmental problems such as climate change, depletion of natural resources, loss of biodiversity, airspace, water or soil pollution. Renovation of multi-apartment buildings and improvement of energy efficiency would contribute to the reduction of the level of CO2 emissions and heating prices“, says Minister of Finance Vilius Šapoka.

The draft resolution submitted by the Ministry of Finance to the Government proposes to issue a loan on-lent by the State from the funds of green bonds for the period of 10 years to the Public Investment Development Agency (hereinafter - VIPA). The latter applied for the loan for the project “Housing Renovation Fund“, which helps the owners of multi-apartment buildings modernise buildings, improve energy efficiency and reduce heating costs.

It is planned to issue the loan of EUR 68 million and to finance the renovation of 156 multi-apartment buildings.

VIPA – is a financial institution established by the State aiming at financing and promoting a sustainable development in the areas with market failure in striving for gainful activities. Over the year 2018 VIPA aims to become the National Development Agency (NDA), which through financial instruments would promote long-term and sustainable investment.